The Grayscale Bitcoin Trust (GBTC) trades at a premium to net asset value. in most cases, it is unwise to pay $1.20 for $1.00 worth of assets.
The GBTC premium exists because there are a dearth of vehicles for traditional investors to obtain exposure to Bitcoin. However, the premium is likely to disappear when more investment products, particularly a Bitcoin ETF, become available.
GBTC investors can monetize, or cash in, the premium before it dissipates by selling GBTC and investing in the SkyBridge Bitcoin Fund L.P. The potential rewards for an investor who implements this strategy are significant, regardless of the price of Bitcoin.
This Website does not constitute an offer to sell and is not an offer or solicitation of an offer in respect of an investment in the SkyBridge Bitcoin Fund LP (the “Fund”), and should not be construed as an offer of any kind or the solicitation of an offer to buy interests in the Fund in any state or jurisdiction to any person to whom it is unlawful to make such offer or solicitation. Any such offer or solicitation shall be made only to qualifying investors, and only pursuant to the Offering Memorandum for the offering of shares of the Fund (the “Offering Memorandum”), Subscription Agreement for interests of the Fund, and organizational documents of the Fund (the “Definitive Documents”), which describe the terms applicable to the Fund and certain risks related to an investment in the Fund and which qualify in their entirety the information set forth herein. Such Definitive Documents should be read carefully prior to an investment in the Fund. This Website does not constitute part of any such Definitive Documents.
Investors should carefully review and consider potential risks before investing in the Fund. Certain of these risks are the following, for a complete list see “Risk Factors” in the Offering Memorandum:
loss of all or a substantial portion of the investment, including because the Fund exclusively invests in Bitcoin, the further development and acceptance of which is subject to a variety of factors that are difficult to evaluate; the slowing or stopping of the development or acceptance of Bitcoin would adversely affect the Fund;
supply and demand for Bitcoin can change rapidly and is affected by a variety of factors, including regulation and general economic trends; in addition to these general investment risks, the Manager may use investment techniques that subject the Fund to risks;
lack of liquidity in that there may be no secondary market for the Fund and none is expected to develop;
volatility of returns;
restrictions on transferring interests in the Fund;
lack of diversification and concentration in Bitcoin as a single asset;
absence of information regarding valuations and pricing;
significant actual and potential conflicts of interest that arise in connection with the Fund; investors should be aware of such conflicts as set forth under “Conflicts of Interest” in the Offering Memorandum; and
less regulation and higher fees than mutual funds.